Great value add with the additional units and great cashflow when the bureaucracy at the city of LA has their act together to decrease the housing shortage.

We might see prices level for a bit, maybe some will even decrease, but I suspect interest rates will go down in 2023 and with that will come an increase in demand again.That's my take anyway.

 I wouldn't be flipping in a high rate environment when we will be seeing a continued decrease in buyer demand and purchasing power.

I've spent hours researching PMs in the area; there seems to be no options that would be an improvement over the current one.If I sell I think it best to get rid of current tenants with paying issues as they would decrease home value.

In order of decreasing importance, I worry about liability from burns on children/pets (they get ridiculously hot while operating), risk of house fire (like if they lean something combustible against it or do not provide a wide enough berth around it), and smoke damage/deposits on the walls from improper use/air mixture adjustment. 

Typically that is paid to a broker-dealer and is included in the total raise, slightly decreasing the investor CAP rate.

I used some basic assumptions like 10% for capex, 3% for repairs; the deal will update the kitchen and add a dormer turning the 3rd floor into a proper bedroom.Why is the total annualized return constantly decreasing so much, and how could it possibly go significantly lower than the cash on cash return?

Provide them contact information and let them know to contact you should the price ever decrease. 

They will more than pay for themselves & probably increase your over all profit while drastically decreasing your stress level. 

Slaying or neutering shows that the owners are responsible and it decreases the chances of the pet marking their territory with urine.